6. Property and Equipment

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

6. Property and equipment

The Company acquired property and equipment with a historical cost value of $7,331,655 in the Sulfatos Acquisition in March 2012. See Note 3 - Sulfatos Acquisition. The following table sets forth our property and equipment at the dates indicated. These assets, with the exception of land which is not depreciable, are being depreciated over their remaining useful lives. The Company recognized depreciation expense of $31,029 for the three months ended March 31, 2013, $15,146 from inception (January 26, 2013) to March 31, 2012, and $116,741 for the period from inception to March 31, 2013.

	March 31, 2013			December 31, 2012
Buildings	$	166,839		$	164,726
Furniture & fixtures		24,331			24,023
Vehicles		133,060			131,376
Mining equipment		430,229			423,453
Plants/property improvements		4,116,872			3,928,356
Computers		37,478			37,018
Lab equipment		66,518			65,675
Total fixed assets	$	4,975,327		$	4,774,626
Less depreciation		(159,663	)		(126,810	)
Net fixed assets	$	4,815,664		$	4,647,816
Land	$	592,543		$	585,040
Congo right to use	$	360,000		$	360,000
Mining property	$	3,767,718		$	3,720,011
Net property and equipment	$	9,535,925		$	9,312,867